Are there any limitations on vertical integration in the oil and gas industry?
No. In general, there are no limitations on vertical integration in the oil and gas industry, however the oil and gas sector is subject to the Brazilian competition rules. In this sense, the Law of Competition Defence is applied to the Brazilian territory and CADE (Conselho Administrativo de Defesa Econômica), a federal government entity linked to the Ministry of Justice, is competent to judge administrative proceedings on competition law, market prices and antitrust matters. According to the Law 8,884/94, decisions taken by CADE are not subject to further appeal. Therefore, CADE is competent to decide upon infractions towards the economic order, as well as the proceedings regarding relevant trade acts, commercial matters, applying the appropriate penalties as defined in law. Furthermore, SDE (Secretaria de Direito Econômico) is a government body which is a part of the Ministry of Justice which is competent to provide legal and documentation support to CADE. Previous Next Back to top •
